Under the terms of the agreement with its Bankers, Ernst and Young (EY) have been appointed to work with Ramco to find a buyer for its 86.5% interest in the Seven Heads Gas field located in the Celtic Sea off the south coast of Ireland.
EY will also assist Ramco in identifying potential buyers for other assets which may include parts of its profitable Oil Services business. This would allow Ramco to repay the £12 million recourse tranche of its Seven Heads borrowings.
A total of 3,000,000 warrants will be granted to the Company's Bankers with an exercise price of 34p per share, the warrants will be exercisable until 30 June 2010.
In a similar arrangement with a major creditor a £1.55 million debt will also be deferred until asset sales have been successfully concluded.
Ramco also announces that it has raised £1 million, after expenses, through an institutional placing of 3,000,000 new ordinary shares of 10p each, at a price of 34p per share. An application has been made to AIM for the new ordinary shares to be admitted and it is expected that trading will commence on 23 June 2005. This placing will provide the Group with additional working capital.
Steve Remp, Ramco's Executive Chairman said "The agreements with our lenders create the framework for Ramco to move forward again. We will be working closely with the Banks and Ernst & Young to identify a third party which is in a position to realize the future potential of the Seven Heads Gas Field. With these agreements in place we are already focusing our attention on the future and looking to re-build value through our portfolio of exploration prospects in Ireland, Bulgaria and Montenegro."
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